A tqm-case-study-in-service-sector british airways

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20071538

British Airways’ new route to customer service

A TQM case study in service sector

BRITISH AIRWAYS

Every 2min a BA flight takes offWorking 24×74th largest airliner in the businessFiercely competing Lufthansa, Singapore

Airlines, American Airlines 25 million passengers

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CHANGE IS GOOD

• Shoddy airline , indifferent to passengers

• World class, financially well, a trendsetter indeed!

• TQM – the route 2 transformation


scenario in BA (1990s)

Under a crisisPreviously a nationalized corporationShedding jobs worldwide to stop making lossMerging of BOAC & BEA Restriction of operating routes


public to private

Prepared itself for privatization Regained its financial wealthAfter £5 million worth advertisement, sold itselfBegan to repair and restructure


Start of the TQM

implementation

Leaner to fitter‘PUTTING PEOPLE FIRST’ program by Collin

MarshallCustomer Employees 30,000 employeesBehavior breeds behavioremployees


know your work place better

‘CUSTOMER FIRST’ team programIn effective attitude of employeesEmployees treated as internal customers‘We fly to serve’ motto‘A Day in the Life’‘gold in the hole’, ‘engineering excellence’,

‘money matters’


organizational & cultural change

Pattern BreakingExperimenting processesVisioningBonding


pattern breaking stage

‘Demanning’ from 59,000 to 29,000Dismissal letters to opposing managersNew, new, everywhere new_______________________________________Experimenting & visioning stage difficultiesPathetic business attitude, absence of good

managers, underachieving education systemEffective motivation- hope of gain not threat of

being fired from job


deep into cultural change

Senior & middle level management‘Leading the service business’Offsite meetingsRecording feedback from the down level

managementParticipative management styleBureaucratic, militaristic service

oriented , market driven.

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act as you preach

BA offered MBA degree! to its employeesEstablished permanent training centreCreated emotional supportOrganizational hierarchy was flattened profit sharing bonus schemesPerformance appraisal system introducedPerformance based compensation systemdata driven feedback system on management

practices

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treat employees as

potential customers Introduction of ‘world traveler’ to economy

classAdvertising it to employees before to

customers‘Internal commitment’‘Internal marketing’

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advertise yourself

Apart from usual ad campaign, brand product theme was introduced

Club world , first class , super shuttle , leisure, world traveler(economy class)

Modification of seats, accessories , catering services

A single ad costs £1 million containing emotional dramatic exp

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Food served has a power full effect on the memory of a flight

Analyzing different aviation routes, adjusting food recipes in accordance with different geographical places

Gained competitive edge

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show down – a moment to

celebrate13 % increase in profitAnother 12% increase in each subsequent yrsBecame fourth largest airliner160 destinations, 90 countries, 25 US cities41 % share in North Atlantic market 235 aircrafts, advanced fleet strength than

competitorsEnormous customer care programs

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REFERENCES

• John Bank, The Essence of TQM, ©Prentice-Hall International (UK) ,2002.

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A tqm-case-study-in-service-sector british airways

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